How to Write a Land Purchase Contract
The vast majority of land transfers are preceded by contracts of sale. The Statute of Frauds, a common law doctrine, governs the creation of land purchase contracts and provides that the writing contain all "essential terms" of the contract. Generally, if the requirements of the Statute of Frauds have not been satisfied, the contract is unenforceable. Although the Statute of Frauds is fairly uniform throughout the United States, it is important to consult with an attorney in the jurisdiction where the land is located to ensure that all proper legal requirements will be met.
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Instructions
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Identify the contracting parties. Both the buyer and the seller must be identified in the written agreement.
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State the consideration. The consideration is what is given in exchange for the property. The vast majority of land contracts involve money given in exchange for the property. Although some courts will imply a "reasonable price" or "market price" if no price is stated in the contract, the specific price should be stated to avoid any ambiguity or the possibility that the agreement will not be enforced.
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Describe the property sufficiently to make clear what property the parties have in mind. For most types of property, the property address will suffice. However, if the land involves parcels of undeveloped land, the agreement must describe those parcels clearly. For example, if the seller agrees to sell 25 out of 100 acres, the agreement might describe the property by stating "the 25 acres located at the southwest corner of my 100-acre parcel."
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Sign the contract. The Statute of Frauds provides that the "party to be charged" must have signed the contract. This means that the party the contract is sought to be enforced against must have signed the agreement. Because it is not known at the time the contract is formed who the contract will be enforced against in the event of a lawsuit, both the buyer and the seller should sign the agreement.
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